The phrase signifies that cost is predicted instantly when an bill or invoice is obtained by the client or shopper. It signifies a requirement for immediate settlement, contrasting with cost phrases that permit for a selected timeframe, similar to internet 30 days. As an example, an bill marked with this directive calls for cost the identical day it reaches the recipient.
Using this situation provides a number of benefits. It accelerates money stream for the vendor or service supplier, minimizing the ready interval for funds. This, in flip, improves monetary stability and reduces the necessity for short-term borrowing. Traditionally, whereas formal contracts generally specified cost schedules, this direct instruction has change into extra widespread in conditions the place fast reimbursement is fascinating, usually for smaller invoices or ongoing providers. Its implementation gives readability and mitigates potential disputes over cost timing.
